• Stablecoins have grown in popularity due to their stability against cryptocurrency volatility.
• At the moment, USDT is the largest stablecoin by market cap, followed by USDC, Binance USD, and DAI.
• After the collapse of FTX, market uncertainty and low trust in centralized exchanges have caused 3.93 billion stablecoins to leave exchanges in the last 30 days.
The stablecoin sector has seen a surge in growth in recent times, with their popularity rising due to their stability against cryptocurrency volatility. USDT remains the largest stablecoin by market cap, followed by USDC, Binance USD, and DAI. Combined, these four stablecoins make up more than $130 billion of the total $138 billion stablecoin market cap, according to CoinMarketCap.
At the moment, about 37 billion stablecoins are held in reserves of cryptocurrency exchanges, with Binance as the highest holder, with about $24 billion in stablecoins. Other exchanges like Coinbase, Huobi, Bitfinex, Gemini, and Gate.io also hold significant amounts of stablecoins in their reserves.
However, after the collapse of FTX, market uncertainty and low trust in centralized exchanges has caused a considerable outflow of stablecoins from exchanges. In the last 30 days, 3.93 billion stablecoins have left exchanges, in a sign of the lack of trust in centralized exchanges.
The uncertainty and lack of trust in centralized exchanges has caused some investors to look towards decentralized exchanges, as they provide more security and trust. As the cryptocurrency industry continues to grow, it will be interesting to see how the stablecoin sector develops and how it will affect the decentralized and centralized exchanges.